Nearly 7 years after SandRidge Energy Inc. and three individuals were sued and accused of violating federal securities laws, the lawsuit is still underway in Oklahoma City federal court.
U.S. District Judge Charles B. Goodwin recently ruled in favor of SandRidge in its efforts to reject some expert testimony that presented new arguments. Judge Goodwin ordered part of the testimony of Bjorn L. Steinholt to be stricken from the record.
The lawsuit filed by James Glitz and Rodger A. Thornberry in December of 2012 accused SandRidge Energy, Tom Ward, James Bennett and Matthew K.Grubb of making false and misleading statements about the company’s Mississippian wells causing the price of SandRidge to be artificially inflated.
The lawsuit (CIV-12-1341G) claimed SandRidge raised $5 billion by this “bullish mantra” before disclosing in November 2012 that “they had been grossly overstating the proportion of oil-producing versus natural gas producing assets in the company’s Mississippian formation.”
“Stock analysts significantly downgraded the company’s stock valuation and SandRidge’s stock price was hammered,” alleged the lawsuit. SandRidge stock fell 9 percent in one day.
The lawsuit saw delays in 2016 when SandRidge Energy filed for chapter 11 bankruptcy. At least two pension funds joined the effort to make it a class action lawsuit. They were the Construction Laborers Pension Trust of Greater St. Louis andthe Laborers Pension Trust of Northern Nevada.